Pay dispute halts work on New Zealand’s tallest building

The company is a subsidiary of China State Construction, the world’s largest contractor by revenue. Sathy Thurai-rajah, its project director, wrote to the subcontractors on Thursday, telling them not to return to work.

The US$187m project is being developed by Shanghai-based developer Shundi Group, to a design by local architect Peddle Thorp.

Thurai-rajah wrote to carpenters, plumbers, electricians, steel fabricators and others to tell them that his company had suspended work following “a payment default by Shundi” that it had “failed to rectify within the required timeframes”.

A spokesperson for Shundi disputed whether a default had taken place, although he acknowledged that there had been discussions about finances and a formal dispute resolution process had begun.

He told the Herald: “While the adjudication is legally confidential, the outcome did not provide a definitive solution to complete the project and has, in fact, raised complex issues related to project delays and associated huge cost increases.

“Additionally, the principal’s concerns regarding the contractor’s lack of security and clear commitment to the project have further complicated matters.”

He added that the company was fully committed to Seascape and ”actively exploring all options to ensure the project’s completion, including the potential engagement of alternative construction resources”.

The 187m tower had reportedly topped out, and was due to be completed this year. However, work on site has reportedly slowed in recent months.

Thurai-rajah wrote in his suspension notice to subcontractors that it was “no secret” that Seascape had encountered issues and was delayed, and that his company had “at significant cost, ensured that the project has continued to be progressed towards completion”.

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